UK Government to clamp down on insurance fraud
Feb 20th
The Prime Minister has agreed to introduce new rules to help cut the £2bn cost of whiplash claims that the motor insurance industry faces every year.
With a staggering 1,500 whiplash claims being lodged every day, the PM has decided that it’s finally time to raise the threshold for claims.
Whiplash claims have risen by a third over the last three years, that’s despite car accidents actually falling by around 16% and the insurance industry is pressing for a minimum speed for whiplash claims to be accepted as well as tighter restrictions around medical evidence.
Overall, the government’s new stance on compensation culture has been welcomed by the insurance industry.
ABI director general Otto Thoresen said: “The cost of motor insurance reflects our society where it is all too easy to make spurious and exaggerated personal injury claims, where excessive legal costs can outstrip compensation awards and that tolerates the high levels of deaths and serious injuries involving young drivers and their passengers. Urgent action is needed to tackle the surge in whiplash claims which now cost insurers £2bn a year and push up premiums for all motorists”.
More Brits exaggerated insurance claims in 2011
Feb 13th
Exaggerated home insurance claims jumped by a whopping 17% in 2011 according to some new research published this week. The figures show that around 200,000 consumers in the UK decided to add a little bit to their insurance claim. The average bit they added was £607!
It suggests that insurance is still seen by many as an easy way of making a little extra (dishonest) cash. The research shows that 12% of people were more likely to make a dishonest claim now than they were three years ago and that an amazing 45% of people did not consider an exaggerated claim to be dishonest…
It shines an interesting light on how people view dishonesty and how many otherwise law-abiding citizens aren’t averse to a little bit of insurance fraud:
- 43% of respondents thought that deliberately damaging an item to make a claim was NOT dishonest.
- 56% of respondents said that it was NOT dishonest to say that windows and doors were locked when they had been left open.
- 58% of respondents said it was NOT dishonest to keep quiet about previous insurance claims.
- 48% of respondents said it was NOT dishonest to submit somebody else’s receipt when making a claim.
New research shows UK’s burglary hotspots
Feb 7th
Recent research has revealed the UK’s most troublesome neighbourhoods for burglary. In an analysis of 3 million insurance quotes issued in 2011, industry figures reveal that London and West Yorkshire are the UK’s most burglarised postcodes.
The study analysed home insurance renewals looking for previous claims for burglary or theft from home or garden. Households in the N16 and BD10 postcodes declared 33.6 and 33.1 insurance claims per 1,000 quotes. More generally, London, Leeds and Bradford appear to be the burglar’s choice.
By contrast, postcodes in Eastbourne, Peterlee and Ryde came bottom of the list as the least burgled neighbourhoods in the UK. Here’s the full list:
Top 10 districts most likely to disclose a home insurance claim
1. N16 – Stoke Newington, London, 33.6 per 1,000 inquiries
2. BD10 – Apperley Bridge, Bradford, 31.7
3. B71 – West Bromwich, West Midlands, 31.7
4. N22 – Wood Green, London, 30.3
5. LS13 – Bramley, Rodley, Swinnow, Leeds, 30
6. LS15 – Austhorpe, Barwick-in-Elmet, Colton, Cross Gates, Halton, Halton Moor, Scholes, Whitkirk, Leeds, 28.
7. BD18 – Saltaire, Shipley, Windhill, Wrose, Bradford, 28.6
8. LS7 – Chapel Allerton, Chapeltown, Little London, Meanwood, Potternewton, Sheepscar, Leeds, 27.4
9. DN2 – Intake, Wheatley, Wheatley Hills, Doncaster, 27.3
10. SW16 – Streatham, London, 27.2
Luxuries before life insurance??
Feb 3rd
A new report has found that families in the UK are more likely to spend their cash on luxury items than spend on life insurance.
The report found that 21% o families saw their annual holiday as a priority for 2012…only 3% said the same thing about life insurance. Oddly, the research suggested that people saw mobile phone insurance as more important than critical illness cover and that people were more likely to buy an extended warranty for their TV than they were to buy income protection insurance.
Get ready for a cold snap…
Jan 31st
With the mildest December in memory behind us, it looks like we are finally due for some proper wintry weather this week. Cold snaps can be a costly time around the home but taking some simple steps now can prevent a lot of trouble:
Freeze and Escape of Water hints and tips:
. If you leave your home or business unattended leave the heating on low
. Know where the water shut-off valve (stopcock) is to isolate the supply in an emergency
. Lag pipes in the loft
. Lag outside water taps to prevent them freezing and pipes bursting
. Check plumbing joints for leaks
. Know where pipes run within walls before carrying out DIY work – tools to detect metal pipes are readily available
Buy to let market is surging
Jan 30th
It seems that, despite the generally depressed state of the UK residential market, more and more lenders are rushing to join the buy to let party. New research suggests that the choice of financial services that are on offer to landlords are now getting close their 2007 peak.
It’s great news for landlords who are already enjoying impressive yields on their investments. The lack of available finance in the residential mortgage market has helped to push demand for rental property to an all-time high, which has lead to increased yields and significant annual rent increases.
As a result of this, lenders are piling back into the buy to let market and cutting their rates aggressively as competition increases. According to Rightmove this means that there are more than three times as many buy to let finance options available today as there were in 2009 and there is a good mix of options to choose from with various lending criteria, interest rates and loan to value options available.
If you’re thinking of dipping your toes into the buy to le market, you will need to get the right insurance before you let out your home so why not call us today for some friendly, helpful advice.
Have you been using a ghost broker?
Jan 24th
As many as 20,000 motorists could be unwittingly driving around with car insurance according to a recent report. The latest scam to hit the high streets is known as ‘ghost brokering’ and could result in tens of thousands of UK motorists driving illegally. Ghost brokers – as this new breed of fraudsters is known – typically trade via websites or newsagents windows, advertising market beating insurance rates. When a customer calls they are sold fictitious or worthless policies and often find that they’ve been a victim of identity theft or credit card fraud.
This is just the latest in a series of audacious insurance scams to hit the UK. It’s a mini crime wave that’s estimated to cost the insurance industry billions of pounds a year and has led to the formation of a specialist insurance fraud unit within the City of London police.
Malcolm Tarling, a spokesman for the Association of British Insurers, said: “If you are approached by someone offering cheap insurance or you see an offer that seems too good to be true, then it probably is. If you are unsure if an insurance intermediary is legitimate then check with the Financial Services Authority that they are authorised and registered with the FSA.”
GPs sound the alarm on car insurance fraud
Jan 19th
A staggering 87% of British GPs believe that they have seen patients deliberately faking whiplash injuries in order to make fraudulent car or personal insurance claims.
The results of a new survey suggest that this sort of fraudulent claim has risen significantly over the last two years as motorists try to make a quick buck on minor car accidents and injuries. According to the data, 60% of people injured in a car accident in the last 12 months had been contacted by claims organisations encouraging them to cash in and make a claim.
It doesn’t stop there. 60% of the GPs also reported that they had been contacted by claims management firms last year and 20% claimed that they receive a call every week from a claims company trying to get details of patient’s details.
Skimping on pet insurance could cost you dearly
Jan 16th
Recent research suggests that as many as 64% of the UK’s pet owners do not hold any insurance for their nearest and dearest and that many of those who do, don’t have sufficient cover to cope with the bills they receive.
As a result of this many pet owners (29%) put off seeking treatment for their animals until the last minute, causing additional medical complications and higher end costs. Few pet owners realise how expensive their pets can be. A road accident can easily cost £2,000 and as a result find many owners find that the proceeds of traditional basic cover are quickly used up at the vets.
There are many types of pet insurance available that can cover owners, not just for vet bills but also for third party damages, bereavement and the cost of finding missing pets. If you’re concerned about the cost of covering your pet why not give us a call today and see how we can help.
Make sue you’re properly covered for weather damage
Jan 10th
With more wild weather in the way this week, householders are being warned that any claims for storm damage could be turned down if they don’t have the right insurance cover.
Many of the UK’s leading insurers have already reported high levels of claims activity brought about by last week’s high winds and damaging weather and are advising customers to check their cover levels prior to a new weather front hitting the UK later this week.
Most home insurance policies will cover damage that has been caused by the weather but there are some important and potentially expensive exclusions that consumers are being to warned to watch out for. Items that are out in the open, such as garden furniture, TV aerials, gates and fences are unlikely to be covered unless specifically mentioned on the policy. In addition, any items that are already damaged or loose are liable to be your own responsibility. This means things like roof tiles that have come loose or fence posts that are already broken.
In order to get ready for the oncoming winds, we advise our customers to do a a quick pre-storm check of the outside of their homes. Make sure that any loose objects in the garden have been secured and give us a call to ensure that your policy is up to date and valid for all the items you wish to cover.